Just want to share with you guys. Today I met a client who is in plantation field, I ask him how much plam oil is reasonable. He told me their cost is below RM900, even RM1000 they can make money already. Hence the price now at near RM2000 is way to be adjusted.

IOI Corp, I am waiting for you ya !

I will get in when the crude oil price is low enough to rebound.

Added information, Europe will cut the contain of palm oil in the bio mixed fuel from 5.35% to 5%. I become interested in plantation counters due to the potential need of palm oil in fuel. But Warren Buffet invested in electric powered vehicle made me wondering, which is the trend of the fuel in future ?

Palm oil rely on convention crude oil to get its value, whereas electricity is a standalone power supply and less polluted. Seems electricity stands better future.

Hope Palm oil remains as the main and populor cooking oil consumed.

This post has been edited by rayloo: Oct 4 2008, 06:23 PM

I think the fair market price for IOI is about RM3.70, but I only stock in at the 30% to 50% discounted price from RM3.70 like other counters. Don know can get or not...but that is no reason to buy at fair market value during promotion period mah !!!

Our G will develop nuclear power plant within the next 15 years according to an article in the newspaper recently.

Based on its growth and PER. Just my kampung calculation to protect myself with safe margin.

Fair value is RM3.70, but minus safe margin 30% becomes RM2.60, that is only my price. Can't get 50% off ! I think.

This post has been edited by rayloo: Oct 8 2008, 10:38 AM

Steady...steady...hold your fire.....

"Measurements will be taken by Malaysia and Indonesia to stablise the CPO at RM1500" taken from newspaper today. Obviously now is still not the time to get in plantation counters.

As at 20th October ;

IOI Corp
-PER = 8.20
-NTA = RM1.4
-Div yield = 5.6
-EPS = RM0.369
-Debt = Yes
Price at 22/10/08 = RM3.04


Asiatic
-PER = 7.87
-NTA = RM2.7
=Div yield = 3.9
-EPS = RM0.457
-Debt = No
Price at 22/10/08 = RM3.32

From the figure here, wouldn't be that Asiatic more attractive ?

This post has been edited by rayloo: Oct 22 2008, 08:55 PM

Nett Assest Per Share.

Cash and Deposit in banks for IOI is RM1,296,260,000 while short and long term debt is RM5,954,981,000......
WOW ! almost 5 times of his cash.

Asiatic has less cash at RM290,860,000....but it wins when it is clean.

My data was taken from their finacial report.

I am quite rush now, here are the links. Please verify.
Asiatic Page 42
IOI Corp, see Page 106 & 107

This post has been edited by rayloo: Oct 22 2008, 09:26 PM

Going out now. Hope can get news later from you all.

How is it ?

IOI very near to RM2.50, revised to RM2.

Don't worry, by the time it reaches RM2, I will revise again........

This post has been edited by rayloo: Oct 24 2008, 02:49 PM

I make price revision because I don't expect RM2.50 come so soon, if it declining slowly to RM2.50 in next year then it is under my plan. I will get in plantation counters ONLY in later mid next year when everything including dust settle down.

I suppose plantation is the last to recover after others, so I will pick IOI at last of my portfolio.